Economic developments in Friuli-Venezia GiuliaUpdate

In the first half of 2007 industrial output in Friuli Venezia Giulia increased, thanks to demand growth. Sales rose in real terms both in the domestic and export markets. According to business expectations, the expansion should continue. After the downturn recorded in 2006, fixed investment showed signs of recovery. The unemployment rate remained steady, at 3.2 per cent, compared with the first half of 2006. Support measures by the Wage Supplementation Fund, triggered in case of a temporary excess of workers, fell by almost 50 per cent. In the twelve months to June 2007, bank credit slowed with respect to 2006, owing to a sharp deceleration in borrowing by financial corporations and insurance companies. Households’ bank debt, for both mortgages and consumer credit, continued to increase faster than bank lending to the manufacturing and service sectors. The default rate (the ratio of new bad debts to the stock of loans outstanding at the beginning of the period) rose slightly; between the end of 2006 and June 2007 the ratio of bad debts to total loans increased from 2.2 to 2.4 per cent. Bank funding from households slowed, while securities held on deposit with banks by households resumed growth, boosted by government and non-bank bonds.